The IMF has a gloomy outlook for the German economy and is lowering its expectations. The outlook for the global economy is somewhat more optimistic.
The International Monetary Fund (IMF) lowers its forecast for economic growth in Germany. Next year, German economic output will only grow by 0.8 percent, 0.5 percentage points less than predicted in July, according to data from the IMF forecast published in Washington. The IMF’s outlook for the global economy is somewhat better – although not rosy. It is expected to grow by 3.2 percent both this year and next year. The IMF calls the global outlook “stable but not overwhelming” and warns of uncertainties and risks.
For the Federal Republic of Germany, the IMF is forecasting the weakest growth of all leading Western G7 industrialized countries this year. The fund now expects zero percent growth, i.e. no change, which is 0.2 points less than predicted in July. According to the forecast, Germany would be at the bottom of the list in terms of economic output (GDP) growth next year, along with Italy.
“Germany is being burdened by budget consolidation and a sharp decline in real estate prices,” the report says. The IMF has long been criticizing structural problems such as the shortage of skilled workers in Germany. The reluctance of consumers is also reflected.
The federal government is more optimistic about growth in the coming year than the IMF and expects the German economy to have a little more momentum: according to the latest information, it expects an increase of 1.1 percent in 2025. The forecast published at the end of September is similar Industrial nations organization OECD. It assumes an economic increase of 1.0 percent.